European Bank Risk Soars To 3 Year Highs, US Risk Rising

Tyler Durden's picture

We are going to need more "whatever it takes." And with Draghi's efforts to shove sovereign bonds down the throat of Europe's banks, the sovereign-to-financial linkage is now systemically as worrisome as it has ever been...


Deutsche Bank's CDS continues to push higher...smashing European bank risk to its highest since 2013...


Unicredit remains the most risky among EU banks...


And it is spreading to America...

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Father Thyme's picture
Father Thyme (not verified) Temporalist Feb 4, 2016 10:02 AM


Boeing Boy's picture

Hey Tyler, this article just appeared in FT reference the silver "FIX" last week;

MarketsSafeguards for daily silver price fix stepped up

22 minutes ago

The administrators of the daily London silver price fix will be allowed to intervene to halt an auction if its integrity is threatened, the companies said.

Thomson Reuters and CME Group said they had endorsed an “intervention protocol” after an auction last week set a price at odds with the prevailing market price, reports Henry Sanderson in London.

London’s daily silver price setting process moved to an electronic platform in 2014 after 117 years of being set between banks. It is the key rate used by miners and buyers to trade large amounts of silver.

But on January 28 the price diverged from the spot market price, raising questions about the system and whether it truly represented the market. Analysts said banks had been wary to adjust submissions to the auction for fear of upsetting their compliance departments in an environment of increased regulatory scrutiny.

Thomson Reuters and CME, which run the process along with the London Bullion Market Association, will also look at other measures to improve the process, they said. This could include a blind auction, where only prices and not volumes are disclosed to participants until after the auction has closed, or centralized clearing for all trades, they said.

“We are committed to maintaining the integrity of the LBMA Silver Price,” said Neil Stocks, chairman of the London Bullion Market Association’s Oversight Committee. “We are introducing enhancements and are consulting on further developments with the many users who rely on this important benchmark.”

Grandad Grumps's picture

I have a novel idea.

How about reinstating the rule of law, prosecuting criminals, disband the central banks, remove all forms of corporate and governmental immunity to prosecution, reveal all secrets and starting something like a free market.

The above is the direct path to a global society. The Satanic method just does not seem to be working very well. People keep resisting.

It may be something that has never been tried before ... but it seems like a good idea for humanity in the long run.

Keyser's picture

Because the entire system would collapse under the weight of the criminal fraud perpetrated by the US government and Federal Reserve since it's inception... The creation of the ESF in 1934 was the coup d'etat... The ESF is above the scrutiny of Congress or any domestic law, answerable only to the Sec of the Treasury and the POTUS, and has been used to fund every black operation imaginable... 

lakecity55's picture

We The People demand Constitutional Money!

Dr. Engali's picture

Risk..., lol..., Don't you know that the fed got rid of that pesky risk thing Tyler? Come on, get with the new abnormal.

Farmer Joe in Brooklyn's picture

The entire world financial system is too intertwined to avoid contagion.

On a similar note, have spoken to some local bank presidents here in western Montana recently and a couple are already getting some indigestion from NPLs related to energy (one was a housing project near Williston, ND and another was a landowner/driller)...and we are quite a ways from the Bakken in ND.

The fun is just getting started.

Tick tock, tick tock....

lakecity55's picture

Kitco spot gold @ 1156.30 @ 1004 EST

All PMs going up, something is up.....or something is gonna crash......

It's gonna be wild at the Big Coin Show starting at noon tomorrow.
A whole weekend to gather intel from The Coinmen!

Keyser's picture

Comex leverage nearly 500-to-1 might have something to do with it... More likely just people piling into the paper gold ETFs hoping to profit from a revaluation... 

lakecity55's picture

Well, I took delivery of some kangaroos which hopped into my house yesterday, but my batman Hanu has already misplaced them. Now he is not answering his phone. The house in Bangalore is small, I don't know how this could happen.

I am flying out Monday to find out.

two hoots's picture

CBs will never admit defeat/failure/inability.  Their amour-propre will take us over the cliff and as we get closer and closer to ruin the deceptions, lies and blame will naturally increase.  Then they will blame nature for creating the cliff.


imtelak's picture

¿Qué tal el restablecimiento del estado de derecho, el enjuiciamiento de los delincuentes, disolver los bancos centrales, eliminar todas las formas de inmunidad empresarial y gubernamental a enjuiciamiento, revelan todos los secretos y comenzar algo así como un mercado libre.


Anti-insect Riyadh Company 

TwoHoot's picture

Who woulda guessed? ZIRP/NIRP makes banking a risky business.

Could that be because the banking business model is depends on money having a positive time value? ZIRP/NIRP destroys not only banking, but bankrupts all insurance companies too.

The Central banks have gone berserk! They are eating their children! Somebody dooooo something!

california chrome's picture

All European banks are announcing subtantial losses, bringing them to 20+year stock price low, or they experiencing substantial cutbacks in hiring, salaries and exposure.

Many reporting first quarterly loss since 2008.  If they couldn't turn a profit when they were borrowing at zero percent, they aint gonna do it now in contracted global economy.


Look out for #1 bank - HSBC reporting February 22, 2016, hovering just above 20-year low presently.   YUGE counterparty risk.


Top 15 European banks:


1.      HSBC                                      UK                  

2.      BNPS Paribus                         France             

3.      Credit Agricole                       France

4.      Deutsche Bank                        Germany       

5.      Barclays                                  UK

6.      Societe Generale                     France

7.      Royal Bank of Scotland          UK

8.      Banco Santander                     Spain

9.      Groupe BPCE                         France

10.  Lloyds                                     UK

11.  UBS                                        Switzerland

12.  UniCredit                                Italy

13.  ING Group                              Netherlands

14.  Credit Suisse                           Switzerland     

15.  Credit Mutuel                          France


Is there a 3X European bank bear ETF anyone can suggest?


zippedydoodah's picture

Yeah, the GTFOO-UK-BANKS is pretty good